Sainsbury’s

Direct Marketing Campaign to increase share of basket spend

Sainsbury’s is Britains longest-standing major food retailing chain. Sainsbury’s serves over 16 million customers each week from over 750 stores throughout the UK as well as offering a range of financial services products through Sainsbury’s bank.

The Challenge

Sainsbury’s wanted to embark on a series of tactical campaigns to increase their share of basket spend with family shoppers in key store catchment areas.

Their main aims were to encourage existing family shoppers to spend more on their weekly grocery budget and to identify families who shopped elsewhere to come to Sainsbury’s instead. They decided the best way to do this was by sending both loyalty card customers and potential customers vouchers to encourage increased grocery spending with Sainsbury’s.

The Solution

CACI carried out detailed analysis of the store catchments using ProVision, its catchment model for supermarkets. This study identified loyalty card customers and non loyalty card customers who were ‘captive’ in terms of their close proximity to a Sainsbury’s supermarket and those customers who were ‘at risk’ in terms of overlap with competing supermarkets.

CACI then enhanced Sainsbury’s loyalty card data with its own individual level targeting tools to establish the spend potential of Sainsbury’s family shoppers. This information was mapped to the wider population to identify people with similar potential but who were not currently Sainsbury’s customers.

Various mailing cells were created for customers and non-customers and different stretch spend coupon mechanics were used to test response. In one year almost 12 million households were mailed promotional vouchers.

Using demographic and catchment analysis of early responders, CACI determined which mechanics drove sales and profit and which did not. It also considered factors such as local competition, shopping behaviour and mailing fatigue. The results were used to personalise later mailings to target only profit and revenue driving customers.

The Results and Benefits

The programme significantly increased incremental sales and average spend per target customer, this increase in basket spend was maintained during the two year campaign. An additional benefit of the direct mail activity was the reactivation of a number of dormant customers.

To find out more about our work with Sainsbury’s either call 020 7602 6000 or email info@caci.co.uk.